Friday, October 28, 2016

(BUSINESS WIRE)-- The
following is a statement from The Ras Al Khaimah Investment Authority
(RAKIA), the investment arm of the UAE Emirate of Ras Al Khaimah:
The Ras Al Khaimah Investment Authority (RAKIA), the investment arm
of the UAE Emirate of Ras Al Khaimah, has filed a lawsuit against
US-Iranian Farhad Azima in the London High Court.
The case brought by the RAKIA centres around two separate claims of
misconduct. The first claims centres on the sale of the Sheraton Metechi
Palace Hotel in Tbilisi from RAKIA Georgia to Eurasia Hotel Holdings
Ltd, a company beneficially owned by Mr Houshang Hosseinpour. RAKIA
alleges that Mr Azima took a ‘secret commission’, that went way beyond
the agreed 5% commission of the sale price of the Hotel and in fact led
to him receiving a 10% interest in the Hotel worth $6.25 million.
Other allegations made by RAKIA suggests Mr Azima paid, the then CEO
of RAKIA Georgia, Khater Massaad $500,000 for his facilitation of the
deal. Massaad has recently been arrested in Saudi Arabia and is awaiting
extradition.
The second aspect of the case brought by RAKIA against Azima concerns
a joint venture proposed by him in late 2015 to buy military aircraft
valued at $52 million. RAKIA claims that the proposal was in fact an
attempt to deceive RAKIA out of millions of dollars.
The High Court claim form states that “Mr Azima was aware that the
joint venture submitted... grossly overstated the value of the aircraft”
and that “Mr Azima [falsely] represented… that the proposed joint
venture had the ‘backing’ of the US government, including that the US
Government would sponsor and support the proposed joint venture and
would serve as its ultimate customer.”
RAKIA is now seeking $2.6 million in damages. The main trial date is yet to be confirmed.